As technology continues to evolve, the collaboration between executives and design teams will be crucial in navigating the challenges and maximising the benefits of generative AI
Generative AI(Gen AI) has swiftly evolved from a popular topic in media to an essential aspect of boardroom discussions. According to the IBM Institute for Business Value (IBV), over one-third of organisations have progressed beyond mere experimentation, actively piloting and implementing GenAIin various functions responsible for creating customer experiences, such as marketing, sales, commerce, and product and service design.
Gartner observes that sales leaders are experiencing increased top-down push from CEOs and boards to fast-track GenAI projects to drive new sales and revenue gains. Close to 87% of Chief Sales Officers (CSO) and sales leaders are seeing GenAI initiatives aimed at driving greater sales revenue growth as a higher priority. Yet, a gap in strategy leadership exists for such initiatives. Only 14% of CSOs and sales leaders are considered to be the key GenAI sales strategies by their organisations.
Forrester’s The State Of Generative AI Inside US Agencies, 2024 report mentions that agencies adopting GenAI will more efficiently outgrow competition, nurture employee creativity, and as a result serve clients better. Forrester finds that US agencies lead the field in terms of GenAI adoption: more than 60% of decision-makers report that their agency is already using GenAI, with a further 31% saying that their agency is exploring use cases for the technology. Additionally, decision-makers report that 78% of large US agencies (more than 201 employees) are currently using GenAI.
The Disruptive Power of Generative AI
A significant 57% of creative leaders and professionals, per IBM Institute of Business Value consider GenAI the most disruptive force affecting experience design. The potential of this technology to enhance customer satisfaction and increase productivity has driven organisations to adopt it rapidly, despite the challenges it presents. Notably, 80% of executives foresee the risks associated with GenAI outputs necessitating greater designer involvement. Simultaneously, 70% of executives believe GenAI will enable them to achieve more with fewer designers.
Balancing Rapid Adoption with Responsible Implementation
Executives and design teams are under immense pressure to adopt GenAI. To harness its benefits while mitigating risks, they must focus on areas where GenAI adds the most value, implement data privacy measures, and build customer trust. Good experience design is crucial for successful business outcomes. Organisations recognised for superior product or service design report a 42% higher revenue growth rate than their peers. Therefore, improving customer experience is a top business priority for C-suite executives over the next two years.
The Promise and Challenges of Generative AI
GenAI holds the promise of hyper-personalisation and accelerated production workflows at scale. Experience design executives believe the transformational benefits of GenAI will alleviate current pressures on experience design. However, implementation barriers exist. Concerns about brand safety, intellectual property, and data accuracy in language models are prevalent. Ethical considerations, biases, and governance issues further complicate the adoption process. A recent IBV survey revealed that 72% of CEOs would halt AI efforts if ethical costs outweighed the benefits.
Governance and Ethical Considerations
Only 5% of organisations have established a comprehensive governance approach to manage and monitor GenAI use, even though half are working towards it. The approach to governance is critical as organisations must balance the potential for innovation with the risks of brand damage and ethical missteps.
Transforming Experience Design Workflows
Despite the risks, GenAI is being embedded into workflows across various functions responsible for designing customer experiences. Customer support has been an early and aggressive adopter of GenAI, with 48% of organisations using it to generate dialogue and answer customer questions. The adoption of GenAI for creating customer-facing chatbots is even faster, with 36% of organisations currently using it, and this number is expected to reach 81% within a year.
Personalisation at Scale with Hybrid AI Models
The challenge of delivering personalised experiences faster and more cost-effectively has plagued industries for years. GenAI systems may finally make this possible, with 63% of organisations eager to invest in it. While half of these organisations currently use publicly available models like ChatGPT and DALLE-E, the real potential lies in leveraging proprietary data to develop hyper-personalised experiences. Although only 24% of organisations are building proprietary models today, 72% plan to do so by the end of the year.
The Role of Design Talent in the Age of AI
Generative AI will democratise and streamline many design activities, but the need for top talent remains crucial. A substantial 82% of executives agree that the risks posed by AI solutions will increase designers’ involvement in projects. Nearly as many expect designers to play a central role in creating GenAI foundation models. Despite this, 70% of executives believe AI-driven productivity gains will allow them to achieve more with fewer designers, a sentiment not entirely shared by creative managers and designers, of whom only 57% think this is likely.
Advancing with DesignOps and Managing Change
Organisations enabled by DesignOps can create procedures for quality control, optimise design systems for AI outputs, and ensure designers are properly trained to incorporate GenAIinto their workflows. DesignOps can also define strategies for scaling GenAI in designing customer journeys and employee experiences, something only a third of organisations have fully implemented.
Generative AI is transforming how organisations design and deliver customer experiences. By addressing ethical concerns, implementing robust governance, and leveraging the full potential of proprietary data, businesses can harness the power of GenAI to drive innovation and growth while maintaining trust and brand integrity. As the technology continues to evolve, the collaboration between executives and design teams will be crucial in navigating the challenges and maximising the benefits of GenAI.
Acknowledgement:
- linkedin.com
- forrester.com